Which of the following describes the location of a party wall?

A party wall is specifically constructed as a shared dividing wall between two attached dwelling units, such as in a townhouse or a duplex. It serves as a structural barrier that provides fire and sound separation between the living spaces of two neighboring units. This wall is an essential component of these types of buildings, as it helps support both units and delineates ownership and responsibilities between the two properties.

The other options do not accurately represent the nature of a party wall. For instance, a party wall would not be found at the exterior of a single dwelling, as this scenario implies a standalone structure without shared walls. Similarly, it does not apply to finished basements unless those basements are part of a multi-unit dwelling where the basement has been divided by a shared wall. Finally, stating that a party wall exists above ground level between detached homes misrepresents the concept, as detached homes do not share dividing structures; each house has its own walls that are independent of its neighbors. Thus, the most accurate description of a party wall is one that is located between attached dwelling units.